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ShareWatch: IWP needs vulture capital rescue

FEW companies on the Irish Stock Exchange have experienced as much flux as IWP, the maker and distributor of personal care and cosmetic products, in the past five years.

Between asset disposals, share buybacks, failed management buyouts, director resignations and a poor operational performance, it’s no wonder the share price has collapsed from €2.54 in 1999 to its current level of 20c. It has a market capitalisation of just €14.8m.

Last week’s interim results did little to lift the gloom at the Joe Moran-led company. IWP reported an adjusted loss per share of 2.3c for the six months to the end of September, due mainly to disappointing performances from the UK operations and the Jeyes joint venture. Jeyes is likely to be sold, reducing IWP’s net debt from €90m to €50m.

IWP offers limited upside potential. The best option would be a take-private by Moran or some vulture capitalist who